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The impact of credit risk management on the performance of banking sector

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dc.contributor.author Abewardhana, M.A.
dc.date.accessioned 2015-10-30T08:55:14Z
dc.date.available 2015-10-30T08:55:14Z
dc.date.issued 2015
dc.identifier.citation Abewardhana, M.A. 2015. The impact of credit risk management on the performance of banking sector. Proceedings of the Undergraduates Research Conference, Department of Accountancy, University of Kelaniya, Sri Lanka. en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/10205
dc.description.abstract Credit risk management in banks has become more important not only because of the financial crisis that the industry is experiencing currently, but also a crucial concept which determine banks’ survival, growth and profitability. The aim of this study is to investigate the impact of credit risk management on the performance of banking sector in sir Lanka. Financial reports of seven commercial banking firms were used to analyze for seven years (2005 – 2011). The panel regression model was employed for the estimation of the model. In the model, Return on Equity (ROE) and Return on Asset (ROA) were used as the performance indicators while Non-Performing Loans (NPL) and Capital Adequacy Ratio (CAR) as credit risk management indicators. The findings revealed that credit risk management has a significant impact on the profitability of commercial banks’ in sir Lanka. Banks today are the largest financial institutions around the world, with branches and subsidiaries throughout everyone’s life. Commercial banks are facing risks when they are operating. Credit risk is one of the most significant risks that banks face, considering that granting credit is one of the main sources of income in banks. The management of the risk related to that credit affects the profitability of the banks. The aim of the research is to provide stakeholders with accurate information regarding the credit risk management of banking sector with its impact on profitability. en_US
dc.language.iso en en_US
dc.publisher Department of Accountancy, University of Kelaniya en_US
dc.subject Performance en_US
dc.subject Credit Risk Management en_US
dc.subject Profitability en_US
dc.subject Non-Performing Loan en_US
dc.subject Capital Adequacy Ratio en_US
dc.title The impact of credit risk management on the performance of banking sector en_US
dc.type Article en_US


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